The Beachbody Company, Inc. reported a loss on a 17.2 percent decline in sales in the first quarter but said results were above internal plan and the company gained traction on its turnaround plan.

“We are pleased with our performance in the first quarter, beating the midpoint of our revenue and adjusted EBITDA guidance, all while delivering against our strategic initiatives. Most notably, we are excited to announce that we have achieved our first positive free cash flow quarter since 2020,” said Carl Daikeler, BODi’s co-founder and CEO. “We have had an excellent start to 2024 and for the remainder of the year, we will continue to deliver against the objectives in our turnaround plan.”

First Quarter 2024 Results

  • Total revenue was $120.0 million compared to $144.9 million in the prior year period;
  • Digital revenue was $61.5 million compared to $64.8 million in the prior year period, and digital subscriptions totaled 1.22 million in the first quarter;
  • Nutrition and Other revenue was $55.5 million compared to $74.1 million in the prior year period, and nutritional subscriptions totaled 0.15 million in the first quarter;
  • Connected Fitness revenue was $3.0 million compared to $6.0 million in the prior year period, and approximately 3,500 bikes were delivered in the first quarter;
  • Total operating expenses were $92.1 million compared to $118.8 million in the prior year period;
  • Operating loss improved by $16.6 million to $10.8 million compared to an operating loss of $27.4 million in the prior year period;
  • Net loss was $14.2 million compared to a net loss of $29.2 million in the prior year period;
  • Adjusted EBITDA was $4.6 million compared to $(0.9) million in the prior year period; and
  • Cash provided by operating activities for the three months ended March 31, 2024 was $9.1 million compared to cash used in operating activities of $7.9 million in the prior year period. Cash provided by investing activities was $3.9 million compared to cash used in investing activities of $3.4 million in the prior year period. Free cash flow was $7.4 million compared to $(11.3) million in the prior year period.

Marc Suidan, chief financial officer, stated: “We made a concerted effort to improve our liquidity position. Our net cash position increased from $3.9 million at December 31, 2023 to $14.4 million at March 31, 2024. This represents approximately a $10 million improvement in our liquidity in one quarter.”

Founded in 1999, Beachbody (BODi) produces fitness and nutrition programs, including P90X, Insanity, 21-Day Fix, and manufactures the nutrition supplement Shakeology.

Image courtesy Beachbody